Unemployment Mortgage Protection Insurance

This type of mortgage protection insurance pays off your mortgage in the case of your death. In the beginning, mortgage life insurance protection would only pay off the balance on your mortgage loan. Mortgage protection insurance policies have become more flexible in recent years and they now offer different options.

• Pays of balance of mortgage
• Pays off full amount of original mortgage
• Can be turned into a life insurance policy
• Joint mortgage protection insurance (with your spouse)

You should not consider a mortgage life insurance an actual life insurance plan, as it will only pay the amount of the mortgage originally agreed upon.

The premium you will have to pay for your mortgage life insurance is based upon several factors and is similar to the factors that would determine your regular life insurance premiums, though normally not quite as stringent. Here are the most important factors that contribute to the cost of your mortgage life insurance.

• Age
• Amount of mortgage
• Do you smoke
• Is it a joint policy

Some companies may require a physical and ask for more a more in-depth medical history, though not all. Generally, a health questionnaire may need to be filled out and that is all that is required. However, if it is later determined that you purposely did not disclose an illness, your mortgage protection life insurance policy will not be honored.

Mortgage Disability Insurance

Mortgage disability insurance pays your monthly mortgage if you become disabled and are no longer able to work. This insurance will pay your mortgage payments for a specified period of time, giving you the opportunity to find other means to pay your own mortgage. If you and your spouse are wage earners, mortgage protection insurance can be taken out on both of you for the same property.

Mortgage disability insurance will pay for temporary disability or longer term disability; though there is normally a cap on the length of time the claim will be paid.

With your home being your largest personal investment, you should strongly consider the means by which you can lose the investment. In recent years, before the banking crisis of late 2007 and 2008, nearly 50 percent of all foreclosures were due to disability.

You have to evaluate what would happen if you were unable to work for a prolonged period of time. Here are a few questions you have to ask yourself while considering mortgage disability insurance.

Can I afford to have someone take care of me while my spouse is working?

Do I have enough savings?

Does my spouse make enough to pay the bills?

How long can I count on my employer to pay, if at all?

When will I be able to begin collecting social security?

These are all serious questions that have great implications as to whether or not you should consider mortgage protection insurance in case of disability. Mortgage disability insurance can pay cash directly to you on a monthly basis during the agreed upon time frame and lighten the burden of having to search for a means to come up with the cash to pay your monthly mortgage.

Mortgage Unemployment Insurance

Mortgage unemployment insurance is another type of mortgage protection insurance that will pay your monthly mortgage payment if you become unemployed. Actually, the benefit can be used to pay any bills you choose as it is normally given as a cash benefit.

There are some guidelines to mortgage unemployment insurance. You can’t simply quit your job and begin collecting checks. Here are some of the basic requirements that have to be met before your mortgage protection insurance will begin paying out.

• Escrow must still be open on mortgage
• Involuntary job loss
• Must have policy for 6 months
• Seasonal workers do not qualify
• Self-employed workers do not qualify

Different policies will have different requirements and you may be able to get a policy in which you do not have to wait 6 months before filing a claim. There could be other terms and conditions involved, so make sure to understand fully just what type of policy you are buying and how to keep it in good standing.

Mortgage life insurance, mortgage disability insurance and mortgage unemployment insurance are the three types of mortgage protection insurance. They should be considered seriously by anyone who has an existing mortgage, as the inability to pay that mortgage could happen at any moment. It serves to help provide for your family at a time when you cannot, whether temporarily or permanently.

You can actually purchase all three types of mortgage protection insurance if you feel it necessary to completely protect your home.